Orange Beach, Alabama Short-Term Rental Market
Orange Beach, AL STRs averaged $338/night at 57.6% occupancy in April 2026 across 20,000+ active listings.
Quick Answer: Orange Beach, Alabama is an active short-term rental market. average occupancy is 58%. average monthly revenue is $5,296. average daily rate is $338. the top operator is Vacasa with 1,878 listings. market score is 82/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Orange Beach, Alabama is part of the Gulf Shores and Orange Beach tourism corridor on the Alabama Gulf Coast, which drew an estimated 8.4 million visitors to Baldwin County in 2025. Visitors spent $923 million on lodging rentals in 2025, up from $871 million in 2024. As of April 2026, the market recorded an average daily rate of $338 and occupancy of 57.6%, generating average monthly revenue of $5,296 per listing. RevPAR stood at $194.73.
Year-over-year momentum was strong: occupancy rose 8.9% while ADR dipped 2.4% and revenue grew 7.2%, indicating that volume gains are driving growth even as operators compete on price.
Active inventory totals approximately 20,079 listings, making Orange Beach one of the largest Gulf Coast STR markets. Entire-place properties represent 19,825, or 98.7% of the market. The platform distribution reflects a mature dual-channel market: 13,519 listings appear on both Airbnb and VRBO simultaneously, 3,565 on VRBO only, and 2,995 on Airbnb only. VRBO’s strength relative to Airbnb in this market reflects the traditional beach-house booking culture on the Alabama and Florida Gulf Coast.
The bedroom mix is weighted toward mid-size vacation units: 2-bedroom listings lead at 6,773, followed closely by 3-bedroom (6,650), 1-bedroom (3,049), 4-bedroom (2,268), and 5-bedroom-plus (1,323). The market’s total score of 82.33 is supported by strong rental demand (87.28), revenue growth (85.49), and investability (94.96), partially offset by weaker regulation (59.88) and seasonality (43.47) scores.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 39% | $198 | $1,986 |
| Feb | 64% | $208 | $2,590 |
| Mar | 69% | $293 | $4,492 |
| Apr | 49% | $297 | $4,090 |
| May | 64% | $326 | $5,193 |
| Jun | 80% | $384 | $7,967 |
| Jul | 79% | $362 | $7,704 |
| Aug | 54% | $296 | $4,605 |
| Sep | 52% | $261 | $3,702 |
| Oct | 53% | $248 | $3,502 |
| Nov | 34% | $225 | $2,193 |
| Dec | 30% | $220 | $1,898 |
Top Short-Term Rental Operators in Orange Beach
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 1,878 | 81,402 | ★ 4.37 |
| 2 | Brett Robinson Vacation Rentals | 1,775 | 15,937 | ★ 4.53 |
| 3 | Liquid Life | 898 | 23,604 | ★ 4.59 |
| 4 | My Beach Getaways | 443 | 10,896 | ★ 4.58 |
| 5 | Beachball Properties | 420 | 13,232 | ★ 4.62 |
What Kind of STR Should I Buy in Orange Beach?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 3,049 |
| 2 bed | 6,773 |
| 3 bed | 6,650 |
| 4 bed | 2,268 |
| 5 bed | 1,323 |
ADR by Property Tier
| Entire Home | $341 |
| Luxury | $468 |
| Professionally Managed | $376 |
Revenue by Dwelling Type
| Apartment | $5,114 |
| Entire Place | $5,331 |
| House | $5,874 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 14.9% |
| vrbo | 17.8% |
| both | 67.3% |
Investment Analysis
Orange Beach presents a high-revenue Gulf Coast investment opportunity with strong demand fundamentals. The typical home value is $680,547, with a median sale price of $617,417 and a median list price of $733,000. For-sale inventory is substantial at 794 units, with 76 median days to pending, indicating buyers have meaningful selection time in the current market. The sale-to-list ratio of 0.842 suggests properties are closing significantly below list price, indicating negotiating room.
At April 2026 average monthly revenue of $5,296, an investor at the typical home value would see annualized gross revenue of approximately $63,553, representing a gross yield of roughly 9.3% before operating expenses. This is a competitive yield for a Gulf Coast beach market with home values above $600,000.
Professionally managed listings command an ADR of $376 versus the all-listings average of $338, an 11% premium. Luxury-tier listings averaged $468 per night, 38% above the market average. House listings outperform apartment listings by a smaller margin than many markets: $5,874 per month for houses versus $5,114 for apartments, reflecting the prevalence of beachfront condos that command premium rates similar to stand-alone houses.
Revenue growth has been strong: 2024 annual average was $5,086 per month and 2025 grew to $5,321. The revenue growth score of 85.49 and investability score of 94.96 both place Orange Beach among the top-tier Gulf Coast markets for investor returns. However, the $500 annual Vacation Rental License and zoning restrictions that limit STR eligibility to specific areas require due diligence before acquisition.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Orange Beach guests book an average of 55.5 days in advance, a planning window of nearly eight weeks. This extended lead time reflects the pattern of Gulf Coast beach travelers who secure summer weeks, spring-break weeks, and Memorial Day and Labor Day holiday weekends well in advance. Operators benefit from locking in peak June and July pricing early and enforcing 5- or 7-night minimum stays during those months to capture full-week bookings at premium rates.
Average length of stay is 4.3 nights, above the 3-4 night average of many markets, reflecting the Gulf Coast tradition of week-long beach rentals. At this LOS, operators see roughly seven turnovers per month at full occupancy, comparable to Navarre and other Florida Panhandle markets. The 55.5-day lead time combined with the 4.3-night average suggests that most peak-summer inventory fills weeks or months in advance; last-minute pricing has limited utility in June and July but is meaningful for filling November through February gaps where occupancy averages below 40%.
Short-Term Rental Regulations
Orange Beach requires operators to hold both a Vacation Rental License (costing $500 per year, renewed annually) and a city business license. The Vacation Rental License application requires a floor plan, site plan showing parking, an affidavit of code compliance, and a property inspection. The property owner or an authorized agent must be reachable by phone 24 hours a day, 7 days a week while the unit is occupied.
Overnight occupancy is capped by bedroom count: 2 guests for a studio or 1-bedroom, 4 for 2-bedroom, 6 for 3-bedroom, 8 for 4-bedroom, 10 for 5-bedroom, and 12 for 6-bedroom properties. Children aged 14 and under are exempt from these limits. Smoke detectors, carbon monoxide detectors, and fire extinguishers are required.
Zoning is the most significant constraint. STRs are permitted on Gulf-front parcels south of Perdido Beach Boulevard, inside Planned Unit Developments (PUDs), and in the RS-1, RS-2, RS-3, and MHS residential districts (excluding the beach overlay). Parcels outside these categories are limited to rentals of 180 days or longer. Buyers must verify zoning eligibility with the Orange Beach Planning and Zoning department before purchase.
There is no owner-occupancy requirement and no primary-residence rule. Lodging taxes total 16%: 10% city tax, 4% Alabama state tax, and 2% Baldwin County tax (the combined rate took effect September 1, 2023 when the city rate increased to 10%). Enforcement includes citations, fines, and license revocation for violations.
Market Comparison
Orange Beach’s April 2026 occupancy of 57.6% is above the U.S. STR median of approximately 55%, and the 2025 annual average of 56.5% also exceeds the national benchmark. ADR of $338 is well above the national STR median of approximately $220, reflecting Gulf Coast beach pricing at a premium location.
The 9.3% gross yield is among the higher-yielding Gulf Coast markets in this analysis, competitive with Navarre, FL (14.2% gross yield) but constrained by higher home values. Revenue growth of 7.2% year-over-year in April 2026 and the 2025 annual average of $5,321 (up from $5,086 in 2024) demonstrate consistent upward momentum.
The operator landscape is highly consolidated. Vacasa leads with 1,878 listings and 81,402 reviews at a 4.37 average rating. Brett Robinson Vacation Rentals is second with 1,775 listings and 15,937 reviews at a 4.53 rating. Liquid Life operates 898 listings with 23,604 reviews at a 4.59 rating. These three operators together account for 4,551 listings, approximately 22.7% of total active inventory, making Orange Beach one of the most professionally managed Gulf Coast markets in the country.
Frequently Asked Questions About Orange Beach, Alabama
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